Itochu, Kyushu Elec. Indonesia Venture to Sell Geothermal Power

April 4 (Bloomberg) -- A venture formed by Kyushu Electric
Power Co., Itochu Corp., PT Medco Power Indonesia, and Ormat
Technologies Inc. signed a 30-year contract to sell geothermal
power to PT Perusahaan Listrik Negara of Indonesia.

The venture will build a 330-megawatt geothermal power
station in Sarulla on the island of Sumatra, Kyushu Electric
said in a statement today.

Kyushu Electric and Itochu Corp. hold a 25 percent stake
each in the venture, according to the statement. PT Medco Power
Indonesia has 37.25 percent and Ormat Technologies, an American
developer of geothermal plants, holds 12.75 percent.

Construction will start in 2014, according to the utility.

No financial terms were disclosed in the statement. The
Nikkei newspaper reported earlier today that the project is
worth more than 100 billion yen ($1.1 billion).

The venture may seek project financing from Japan Bank for
International Cooperation and Asian Development Bank, according
to the statement.